The Portfolio: 24Q2

This issue of The Portfolio is a summary of my financial situation for the 2024 Q2. The other posts (previous quarters) can be found at links at the bottom of this webpage, under Continue Reading. You can also download the full post in PDF below.

Recap

The overall conclusion reached, the word "recession" has lost its urgency, since governments has displayed their largesse when it comes to fulfilling their agenda, disregarding the working class. Both political parties practice trickle-down economics via crony capitalism to set low living standards for the majority (working class). In recent years, the governing class has publicly displayed who & what is worth investing in; and unfortunately, that's not ending homelessness, hunger, war, or poverty. I believe the overall portfolio provides a comprehensive look into America's markets, economy, and international affairs. Starting this year focused on asset managers & financial institutions, noted a majority of recent capital fundraising coming from Asian and Middle East investors. While government, states, and their institutions are requiring massive investments to fund billions -trillions dollar deficits, the Fed will hold rates higher, at least until the second half of the year, when the markets realize the price of global debt repayment. This is why the portfolio is positioned to capture any financial gains from the massive government (& corporate) bond market, India's growth, USMCA trade benefits, asset accumulation by large managers, and consumer focused products & services. The majority of stocks/ ETFS in the portfolio pay dividends that will continue to be compounded into an asset-backed safety net, reflective of current world affairs. That being said, following the trend and narratives being pushed by various industries, western institutions are trying to minimize the negative effects of D.M.&T. Hopefully, gains can be made without sanctions and other restrictions negatively affecting the bet. Therefore, brace for the Global South/ Global Majority to attempt to reshape the world order; deglobalization serves as the result of the BRICS+ nations and America (NATO nations) fighting over resources. Tokenization is the collaborative scheme between Wall Street and governing elites to further control global assets & resources via digital contracts. Then there's multipolarity, the claimed desired result of the Global South, claiming to want a fair and equitable world, not ruled solely by America.

The Portfolio

Buy, Sell, Watch

There was a lot of activity beginning the quarter, the focus was to get more offensive and prepare for the possible downturn, while taking advantage of the greed and market manipulation going on. And hopefully when the dust settles and the waters calm, my picks would have not only survived but able to thrive. The portfolio is still positioned to capture possible gains discussed in Recap section, with slight modifications that will be covered in Investment Strategy section.

24Q1: I exited BYFC & F and sold shares in AAPL, MSFT, UBS, ETH, UBER & SCCO and added DIS, IBN, DGIN, PIN, DHT, UBS, USB, JPM, BAM, BN, DG, TGT, UL, AAPL, MSFT, GM, CMCSA, TMUS, DTEGY, VZ, CP, CGW, CMF, XLU, SPGM, GOLD, CBON, SPXS, ARCC, VICI, & KBR. Stocks on my watchlist: ALLY, BAM, LEMB, CP, IBN, PIN, MSFT, SCCO, AXP, HKXCY, CMCSA, TMUS, & JPM.

24Q2: I sold shares in USDC, AGM, AXP, KBWD, RTX, AFL, VICI, KBR, UBS, AAPL, CMF, MRK,MSFT, & SCCO and added USDC, HKXCY, AGM, CMCSA, DGIN, DHT, PIN, BN, SPXS, KIE, VZ, KO, STWD, DTEGY, DIS, TOLZ, UBS, CME, DG, CP, LEMB, BAM, USB, LAZ, BNRE, GFL, WMMVY, & TMUS. Stocks on my watchlist: ALLY, BAM, BNRE, CP, IBN, PIN, MSFT, SCCO, AXP, KIE, HKXCY, CMCSA, TMUS, & JPM

Top 10 Allstars

This section discusses/reports on the top holdings of the portfolio. Due to the sale of successful stocks, the list has changed quite a bit. There had been a few expected changes, as previously listed, I sold shares of Southern Copper (SCCO) to lock in gains before supply chain issues and material hoarding start affecting stock prices. The company is in a prime country, mining an essential material, no wonder the stock continues to fight against the sell off. Canadian Pacific Kansas City (CP) & Brookfield Corp. (BN) cracked the list, and Brookfield Asset Management (BAM) has moved up the list, which was intentioned. I plan on adding to Brookfield Reinsurance (BNRE) and may be preferred over Brookfield Corp. (BN).

24Q1: AXP, ALLY, SCCO, TOLZ, MRK, VZ, UL, DIS, AFL, & BAM.

24Q2: ALLY, TOLZ, VZ, UL, CP, BAM, OHI, BN, DIS, & USB.

Small Bets

This section is composed of my smallest positions. As previously mentioned, regarding RTX, I’ll continue to sell off gains while collecting the dividend payments until I'm completely out. Warner Discovery is a long bet. It was sprung off AT&T (T) in an attempt to save legacy brands; now the company doesn’t have a clear future until the cannibalistic frenzy known as mergers & acquisitions (M&A) has settled and the survivors are recognized. Invesco KBW High Dividend Yield Financial ETF (KBWD) has finally entered the list after being sold off in 23Q3. As previously mentioned, Southern Copper (SCCO) hit stop orders and gains were redistributed into other stock picks.

24Q1 Tickers: SPXS, RTX, WBD, & TMUS

24Q2 Tickers: RTX, KBWD, & SCCO

Top Performers

This section is composed of my top performing positions. Last quarter’s special mention, Ethereum (ETH) has pulled back quite a bit from the highs it was coasting around, just to be revived by ETF approval. As long as it stays above $3,000 it’s too rich for more investment from me. I placed stop loss orders tailing the stocks (AXP, MRK, & AFL), most were triggered, resulting in a change of guard. I need to find new diamonds in the ruff. So going forward, tickers that appear on the list 6 consecutive quarters will be sub-labeled a “Diamond Gain” stock and held until determined plan. Currently on the DGS list: AXP

24Q1 Tickers: AGM, AXP, ETH & MRK

24Q2 Tickers: AFL, SPGM & ALLY

Worst Performers

This list is composed of my worst performing positions. So going forward, tickers that appear on the list 6 consecutive quarters will be targeted for sell or sub-labeled a “Prayer Hold” stock and held until determined plan. Currently on the PHS list: HOOD, T, GOLD, SOFI, & VZ. Even though Verizon (VZ) is a top dividend stock, the market seems to prefer its competition, T-Mobile (TMUS), but I believe in the long term the company will be able to regain market share and prefer-ability. I foresee AT&T (T), Robinhood (HOOD), & SoFi (SOFI) on the list for quite a while longer. I'm surprised by the low price of Barrick Gold (GOLD), I thought it would trade higher having both gold and copper. Similar to how the Top Performers list stay consistent, the Worst Performers are no different, and unfortunately that takes the spotlight off of other poor performers. Such as the ones being highlighted this quarter.

24Q1 Tickers: HOOD, GOLD, T, SOFI, & VZ.

24Q2 Tickers: DG, CMCSA, USB, DIS, & STWD.

Dividend Payout

Top Dividend Payers this quarter were STWD, VZ, & SPGM, two cementing their place on the list. Tracking reveals some companies have resumed, increased, or stagger their dividend. This quarter's dividend total: $151.05, (previous quarter: $135.53). This quarter's results $15.52 (+11.45%): Apr. $50.66, May. $56.74, & Jun. $43.65. Compared to the previous year, Apr. +$8.03 (+18.84%), May -$20.83 (-26.85%), Jun. -$9.97 (-18.59%), respectively. Total of 49 payments made.

COLD WAR II: AMERICAN DIVESTMENT

This cold war was ignited during the Trump administration's tariff campaign and continued with the Biden administration's sanctions. The entire world watches as major Powers attempt to control industries, resources, and supply-chains, while sabotaging other nations. The quest for institutional control ripples through every aspect of life, whether that be employment in California or the finance of a foreign nation [...]

[Download PDF for full report]

Investment Strategy

The intention is to take in account the risks considered; while following market trends with investment in FOREX/ bond markets in nations/ economies like those in Brazil, Mexico, India, & Nigeria. Domestically, trends suggest mergers & acquisitions (M&A) continues to curb competition and consolidate market share throughout industries such as: media/ telecom, utilities, food, and finance, into the hands of a few companies. Therefore, ETFs/ Index funds may be the salesperson’s preferred push, the reality is the average investor can capture mass market share of entire industries with only a few positions. For example, the average investor can place bets that covers a majority of telecom & media services in the US with investment in four companies (TMUS, VZ, T, & CMCSA).

The best strategy to take advantage of everything discussed in the Outlook section, for those of us limited to only USD, is to bet on essentials and state-ordered goods & services. Treasury bills, utilities, healthcare, insurance, and large financial institutions are the best options. The two-way wire between banks and the Fed sypher funds from US treasuries to FOREX, offering secondary opportunities for investors and shareholders of those institutions; essentially, the scheme legitimizing tokenization or real-world assets (RWA). With the rise of pro-corporate legislation; utilities, healthcare, and insurance remain “mandated essentials”, limitless potential for upside regardless of surrounding events/ circumstances.

To maximize profits, dividend payers are preferred, and the investment strategy strives to increase the total of each month. Holdings will be determined by potential income from dividend payouts and capital gains. Focus continues to be debt reduction and asset accumulation.

DISCLAIMER

This memorandum expresses the views of the author as of the date indicated and such views are subject to change without notice. Moralcap (or West Elephant Solutions) has no duty or obligation to update the information contained herein.

Further, Moralcap makes no representation, and it should not be assumed, that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.

This memorandum is being made available for educational purposes only and should not be used for any other purpose. The information contained herein does not constitute and should not be construed as an offering of advisory services or an offer to sell or solicitation to buy any securities or related financial instruments in any jurisdiction. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources.

West Elephant Solutions (“W.E.S.”) believes that the sources from which such information has been obtained are reliable; however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based.

This memorandum, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part, in any form without the prior written consent of West Elephant Solutions.